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LGD to Open Guangzhou Gen 8.5 Fab in August; Double OLED TV Panel Capacity
July 22, 2019
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LG Display will be holding the opening ceremony for its Guangzhou Gen 8.5 fab on August 29. LG Display has invested about 5 trillion won (US$4.2 billion) to build the factory and will begin test runs this month to check the quality of OLED panels.
 
 
The capacity is 60,000 OLED sheets/month in the initial stage, which would increase its total monthly OLED sheet output capacity to 130,000 units this year when combined with its production line at its South Korean factory in Paju. LG will implement MMG (3 65” and 2 48” panels) in 2020. The average price of the firm’s 55-inch LCD for TVs dropped 23 percent on-year in the first quarter, according to WitsView, a division of Trendforce. This year, LG Display has vowed to speed up the transition from LCD to OLED to get a bigger share of the premium TV and smartphone market. The company shipped 2.9 million units of large OLED panels last year, which accounted for over 20 percent of its total sales, turning to surplus for the first time in five years since the panels’ launch. LG Display expected the sales ratio to exceed 30 percent this year. IHS Markit predicted the ratio of OLED TVs will rise from 5.7 percent of the total market in 2018 to 10.4 percent in 2023. From: ETnews

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Figure 1: LG'S Guangzhou Gen 8.5 Fab
​Figure 2: LG’s OLED TV Panel Output (10K) Sales/Operating Profit (KRW m)
From: Company
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From: Company
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